Taxation of the Digital Economy in Nigeria: A Conceptual Review

This study examined the taxation of the digital economy in Nigeria through a conceptual review, focusing on challenges, prospects, and policy implications of taxing digital activities including e-commerce, fintech, streaming services, online advertising, and social media commerce. The purpose was to critically analyse how Nigeria’s legal and regulatory frameworks, administrative capacities, and technological tools interact to facilitate revenue mobilisation from digital economic activities. A qualitative conceptual research design was employed, relying entirely on secondary data from academic journals, government reports, Finance Acts, and international frameworks, with data analysed through content and thematic analysis and supported by descriptive statistics from government and global sources. Findings revealed that while Nigeria’s digital economy has expanded rapidly, compliance with tax obligations remains moderate, with informal platforms and cross border transactions limiting effective revenue collection. Legal recognition of significant economic presence is crucial for capturing digital taxes, yet enforcement gaps and limited technological monitoring hinder compliance, with fintech platforms integrated into formal banking systems showing higher adherence than informal social media commerce. The study contributes a structured conceptual framework linking digital activities, regulatory clarity, administrative enforcement, and revenue outcomes, while identifying critical policy and practical gaps. The findings imply that improving technological monitoring, strengthening legal frameworks, and enhancing stakeholder engagement are essential for increasing compliance, offering insights for policymakers and laying the foundation for future research on sustainable digital taxation strategies in Nigeria.